Many business credit cards offer helpful benefits for startups.
Running a startup is never easy. You’re juggling multiple priorities at any given moment — including, of course, your company’s finances.
A business credit card can be your best friend for covering last-minute expenses and there are lots of cards that cater to startups. But watch for cards that require personal guarantees: in the event of delinquency, you’ll be on the hook for company debt and your personal credit may be affected.
What are the best business credit cards for startups?
There are many business cards on the market, but it’s likely only a few offer benefits that meet your specific needs. Here are a few of our top picks.
The Brex 30 Card is a charge card specifically designed for startups. What makes this card unique is that it doesn't require a personal guarantee to apply for the card. This means your personal assets can't be used to cover your business debt in case your company fails to pay it off.
Pros
Rewards program. Earn 8x points on rideshares, including Uber, Lyft, taxis and scooter, 5x points on flights and hotels booked through Brex Travel, 4x points on restaurants, dining and eligible Apple products purchased through the Brex portal and 3x on recurring software purchases like Salesforce, Zendesk and Twilio. All other purchases earn 1x points.
No personal guarantee. Your startup may fail. With Brex 30 Card, you are not personally liable for the card debt and you don't need a personal guarantee to be approved for the card.
Signup bonus. Get $150,000 worth of services, including $5,000 in credit for Amazon Web Services, a 25% subscription discount off of 12 months of eligible Slack plans, 20% discount on annual Zoom subscriptions, 50% off on Dropbox business plans and more.
Cons
Can't carry a balance. The Brex 30 Card is a charge card, meaning you must pay your balance in full every month before it's due.
Annual fee
$0
Purchase APR
N/A
Balance transfer APR
N/A
Welcome Offer
Up to $150,000 worth of credits and offers for business services like Amazon Web Services, Slack, Zoom, Google Ads and more
This is one of your best choices if you travel often. You'll earn accelerated points on travel and other business categories. And when you redeem points through Chase Ultimate Rewards, they're worth 25% more.
Pros
Signup bonus: 100,000 bonus points. To earn bonus points, spend $15,000 on purchases in the first 3 months of card membership. When you redeem them through Chase Ultimate Rewards, they're worth $1,250.
Rewards: More on business purchases. Earn 3x points on the first 150,000 you spend per year in combined purchases on travel, shipping costs, eligible advertising and Internet, cable and phone services. Once you reach the cap, and on all other purchases, you'll earn 1x points.
Points transfers to frequent-traveler programs. Transfer your points at a 1:1 ratio to select airline and hotel programs, such as Southwest Airlines Rapid Rewards, Marriott Rewards and World of Hyatt.
Cons
Annual fee. The card costs $95 annually.
No intro APR period. You don't get a 0% intro APR period on purchases and balance transfers.
Annual fee
$95
Purchase APR
15.99% to 20.99% variable
Balance transfer APR
15.99% to 20.99% variable
Welcome Offer
100,000 points after spending $15,000 in the first 3 months
If you need to take on interest-free debt for longer than a month, you’ll want a card with a strong intro APR. The U.S. Bank Business Cash Rewards World Elite™ Mastercard® is one of your top options, offering a long zero-interest promotion and strong rewards in select business categories.
Pros
Annual fee: None.
Intro APR. Get a 0% intro APR on purchases and balance transfers for the first 15 billing cycles following account opening. After that, your APR will be 11.99% to 22.99% variable.
Cash back. Earn 3% cash back on qualifying gas station, office supply store, and cell phone or service provider purchases. Earn 1% cash back on all other qualifying purchases.
Signup bonus. Earn $500 cash back after you make $4,500 in eligible purchases within the first 150 days after account opening.
Annual bonus. After each account anniversary, earn a 25% bonus on the cash rewards you earned the previous card year.
Cons
Potentially high APR. Depending on your creditworthiness, you could receive an ongoing purchase and balance transfer APR as high as 22.99% variable.
Penalty APR. U.S. Bank may raise your purchase, balance transfer and cash advance APR up to 29.99% fixed after one late or returned payment or if you exceed your credit limit two times in 12 consecutive months. This rate applies until you make six consecutive minimum payments on time and don't exceed your credit limit in that same period.
Annual fee
$0
Purchase APR
0% intro for the first 15 billing cycles (then 11.99% to 22.99% variable)
Balance transfer APR
0% intro for the first 15 billing cycles (then 11.99% to 22.99% variable)
When you’re bootstrapping your startup, you might not have the best credit, from running up high balances or taking out loans. When other cards might be out of reach, the Capital One® Spark® Classic for Business may be a viable option because of its unique features: no annual fee, unlimited cash back on your purchases and you can apply with an average credit score.
Pros
Apply with average credit. Capital One specifically targets this cards toward business owners with average credit.
Annual fee: None. A breath of fresh air, especially when your credit might not be where you want it to be.
Rewards: 1% cash back on every purchase. Earn unlimited rewards with no minimum to redeem. It isn't a great rewards rate, but it's a decent deal if you have fair credit and need a business card.
Cons
High APRs for purchases and cash advances. You'll pay up to 26.99% variable APR on your purchases.
If your expenses spread through many categories, like office supplies, travel and shipping costs, a flat-rate rewards card like the Capital One® Spark® Cash for Business might help. A flat-rate card means you earn a flat 2% cash back on all purchases with no category restrictions. Also, you get to earn a generous signup bonus and you won't pay an annual fee for the first year.
Pros
Annual fee: $0 for the first year, then $95. After the first year, the annual fee is $95.
Signup bonus. Earn $500 after you spend $4,500 on purchases within the first 3 months of card membership.
Rewards: 2% cash back on all purchases. Earn unlimited rewards with no minimum to redeem.
Cons
Annual fee. Capital One has a $0 annual fee for your first year. After that, the annual fee will be $95. With 2% cash back on your purchases, however, you can offset the annual fee by spending $5,000 a year.
Late payment fees and interest. You'll pay up to $39 for late payments. If you're late twice within 12 billing cycles, Capital One may apply a penalty APR of 29.4% variable to your account. And you could be stuck with the penalty APR until you make 12 consecutive on-time payments.
Annual fee
$0 intro annual fee for the first year ($95 thereafter)
Businesses that have no credit history or those that have poor credit score should consider the Wells Fargo Business Secured Credit Card. Being a secured card means you have to make a deposit of between $500 and $25,000 to act as your credit limit. If Wells Fargo upgrades your card to an unsecured one or if you decide to close your account, Wells Fargo will return your deposit if there's no outstanding debt.
Pros
Build your credit. Wells Fargo reports your card activity to the Small Business Financial Exchange. With responsible use, you could quickly see your business credit score rise.
Rewards. Select one of two programs: 1.5% cash back on all purchases or 1x points plus bonus points for every spent.
No annual fee. You won't pay an annual fee for your main card.
Cons
No intro purchase APR. The Wells Fargo Business Secured Credit Card has no intro APR on purchases, meaning you start with an APR of 15.15% + prime rate right off the bat.
Most fees aren't listed. Late payment, returned check and similar fees aren't given outright.
We measure a few different factors when comparing available credit cards for startup businesses, including credit score requirements, introductory APRs, reward programs, points or cash back earned per dollar, reward earning categories signup bonuses and other added perks particularly beneficial to startups. The cards we highlight demonstrated exemplary performance in one or more of these categories.
What’s changed in 2022
Our list stood relatively stable this year, with most cards maintaining strong performance and remaining top picks in their respective categories.
Pros and cons of startup credit cards
Pros
Access to funds
Earn rewards on purchases
Get 0% intro APR period on purchases
Build business credit
Track employee spending
Cons
Could damage your personal credit in case of delinquency
You may be personally liable for the company debt
Credit limit may not be enough
Could pay an annual fee
How do I choose the best small business credit card for a startup?
Your startup’s finances can be simplified with the right credit card. Here’s what to consider to choose the right one:
Annual fee. Startup margins tend to be razor-thin and the last thing you want to factor into your balance sheet is the added expense of an annual fee. There are numerous no-annual-fee business cards available but bear in mind that you’ll earn more powerful rewards with cards you have to pay for.
0% intro APR. Getting a business off the ground can be expensive — especially in the first year of business. Seek a credit card with a 0% introductory APR so you can cover upfront costs without the added weight of generated interest. Intro APRs for business cards tend to span up to 15 months.
Signup bonus. Some cards offer points, others offer cash, but either way, a signup bonus can help offset unexpected expenses while you focus on getting up and running.
Rewards. Cards with annual fees may pay for themselves if they’ve got a solid enough rewards program. Review regards program criteria against your business’ spending habits to find a program your startup can profit from.
Employee cards. Most card providers let you add employee cards at no additional cost. You can set spending limits, monitor card activity and easily export card data to accounting software.
Should I get a business credit card or use my personal card?
There are plenty of benefits to using a business card instead of a personal card. A business card can help you separate your personal spending from your business spending. While it may be tempting to rely on your personal credit card for business expenses — especially when you’re just starting out — this can have several unintended consequences. For example, separating your personal spending from your business spending can help you easily differentiate expenses and sort deductions come tax season.
Plus, a separate credit card for your business helps protect your personal assets if your business is incorporated and you find yourself facing a lawsuit. And even if your business isn’t entirely official, a business card offers other perks too:
Can I get a business card before my company is official?
Yes. In fact, freelancers and private contractors are eligible for business credit cards as long as they can prove their income.
While different card providers have different eligibility criteria, you should be prepared to offer the following information when you apply for a business credit card:
Name of your business
Industry type
Business tax ID number
Time in business
Number of employees
Annual revenue
Estimated monthly expenses
Total annual income
Social Security number
Personal credit history
When should startups reconsider their credit cards?
What’s suitable for your business in its infancy may not work long-term — especially if your business experiences rapid growth or a sudden change in trajectory. One reason you may want to consider swapping card providers is if your business has outgrown your current card’s credit limit. Or perhaps your business checking account is stationed with another bank and there are perks or incentives for combining your accounts. A practical way to evaluate whether your current card serves the needs of your company is by reviewing your business expenses and spending habits. Does your current card offer perks and rewards that benefit your business? Would it be possible to snag a lower APR by switching providers?
Just because a particular card worked for your startup doesn’t mean it will continue to work for your business two, three, five or ten years down the road. The bottom line? Don’t be afraid to switch it up.
Compare cashback business cards
Here’s a quick side-by-side look at some of the cashback business cards available.
Bottom line
Your startup faces unique challenges, which some cards can address more effectively than others. Business cards are tailor-made to help you overcome challenges related to your business. If you don’t have a business credit history or if you have bad credit, compare cards for no credit.
Am I personally responsible for debt charged to a business credit card?
Most providers will ask you to personally guarantee the debt you accrue on your business card. For that reason, it’s a good idea to only spend as much as you can personally pay off.
Will I know in advance what my APR will be for my business card?
As with personal cards, you won’t know your APR until you receive your card. The better your personal credit — and your business credit, if you have it — the more likely you are to receive an attractive APR.
Kevin Joey Chen is a credit cards, banking and investments writer whose work and analysis have appeared on CNN, U.S. News & World Report, Business.com, Lifehacker and CreditCards.com. He's passionate about helping you get your finances in order by expertly navigating cutting-edge financial tools — including credit cards, apps and budgeting software.
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